Tuesday, September 11, 2012

First FHFA REO Bulk Sale Awarded

A while ago we heard that REO's were going to be sold in bulk to investors. I have read that the California Association of Realtors (C.A.R.) is against this. The C.A.R. feels, rightfully so, that we need the listings on the market for traditional home buyers.

The bulk sales are going to be sold to investors, after they have determined they are worthy of the properties and will do with them what the FHFA had intended.

Many are occupied, so the investors will become landlords. The first bulk sale was in Florida, one of the hardest hit states of the housing bust. 699 units were in this transaction, just over 500 had people living in them. The estimated value to Fannie Mae is 78.1 million. These properties were apparently sold at near, or even above, market value.

Through this pilot program, almost 2500 Fannie Mae foreclosed homes are scheduled for bulk sale in neighborhoods of Las Vegas, Phoenix, Chicago, Nevada, Arizona, and the Riverside and Los Angeles areas of California.

Bulk sales in housing...not sure if this is a good idea or not. While we want to clear out as many REO's as fast as possible with the least amount of burden to the taxpayers....we really need more homes for our buyers.....What say you?

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